Markets will not sell off today. If you’re a pathetic bear, you need to understand that bear markets crash, recover, then roll. It’s the last leg of this process that solidifies the bearish bias.
Consider the following affect on a person’s psyche.
Flash crash lower — Joe is feeling good. He thinks the market was doing stupid shit, blames it on crooked Wall Street.
Market recovers. Joe is back in the saddle, punching out gains, feeling good.
Then market starts to roll lower, slowly and with method. Joe thinks the market will rally, so he buys a fuckload of stocks. In the next several weeks and then months, there isn’t a flash crash, but a slow burn downward. The combination of lower prices and length of time break Joe, and now he’s forced to sell the house, divorce the wife, and lose the kids.
That’s how bear markets are formed, by breaking investor psyche over an extended period of time.
With that being said, we’re still heading higher. I am 100% long, doubled sized positions in all my SAAS stocks, TQQQ and SOXL. I also own some LABU. I am a seller when the QQQs hit $178.
LOL that’s great.
Damn, named your target ($178) as well. PostNGhost could learn something from you. Gee, I wonder why he isn’t posting today.
I’m 60/20/20 long/short/cash. My nuetral target is QQQ $175, although that could change.
To be clear, I was 0% short heading into Tuesday, and I already have a gain on my net short postions (as well as my longs, of course).
It should be obvious (based on my past posts) which stock I shorted today, so don’t bother to ask…
BTW, if anyone beleives that the bear market hasn’t already started:
-> You must also believe that we will set new ATHs (by defintion)
-> which means that
1) ether the same market leaders will reach near their ATH’s (NFLX, $400+, AMZN $2000+, MU $70+, FB 200+, etc.), or
2) we will see new **large cap** market leaders.
1#1 seems like a very unlikely sceanrio. While MSFT, AAPL, and GOOG *may* set new ATHs, who will take the place of the other tech leaders?
Take a look at the big boxes and then you know what to buy (if you’re bullish):
https://www.finviz.com/map.ashx
WTI obliterated in past month. I like the risk reward with them technical for a bounce esp with the Iran sanctions kicking in next week. Just grabbed UCO after hours. One or two day hold only.